DFPCL's net profits up 71%, sales grow by 23% in Q1 FY 06

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Deepak Fertilisers & Petrochemicals Corporation Ltd., (DFPCL) announced strong growth in both sales and net profits for Q1 2005-06 over the corresponding quarter in the previous financial year.

Profit after tax (PAT) for the first quarter of the current year has gone up by 71 % to Rs. 22.62 crore (against Rs. 13.20 crore in the previous corresponding quarter) while sales improved to Rs. 138.27 in Q1 2005-06, against Rs. 111.96 crore in Q 1 2004-05.

The Company's chemicals business remained the primary driver for the growth in net profit and sales. The ability to manage a flexible product mix was critical to this achievement.

The Company's Chairman Mr. C. K. Mehta, while speaking at the 25^th Annual General Meeting, declared a Dividend of 25 percent, plus a 5 percent special Dividend (totaling 30 percent), in DFPCL's Silver Jubilee Year. He emphasised that the Company would reposition its Fertiliser business with a thrust in the integrated agri-business segment offering a total nutrient basket along with agro-advisory services. Going forward, the Company would also emerge as a total solutions provider in Chemicals, mining and the agri-sectors, leveraging its technology-base and knowledge-driven sales and marketing strengths, he said.

He also stated that the Company, as a leading manufacturer of prilled Ammonium Nitrate in India, was exploring options for setting up additional capacities in order to optimize and leverage its strengths in the segment.

DFPCL' Managing Director Mr. S. C. Mehta added that with additional Gas availability from the KG Basin the new services based thrust should lead the Fertilisers division to profitability in three years while augmenting growth and profitability in the Chemicals operations. He also stated that the Company's IPA project and its new Design Centre and Speciality Mall, Ishanya, were on schedule for completion. These would provide considerable impetus to DFPCL's overall growth plans in terms of both topline and bottomline over the coming years.

During the year 2004-05, DFPCL had registered its highest ever Profit Before Tax (PBT) of Rs. 112.46 crore, on Total Revenues of Rs. 500.95 crore for FY 2004-05 (FY05). Net Profit for the year FY 05 rose by 14 percent to Rs. 79.75 crore against Rs. 69.72 crore in the previous financial year.

Pune, 19^th July 2005.